COBALT and Linklaters advised EIB and NIB on financing of the Kekava Bypass road project

COBALT and Linklaters advised European Investment Bank (EIB) and Nordic Investment Bank (NIB) on signing a 21-year loan agreement of EUR 122.2 million for the Kekava Bypass road project, which is to become the first major private-public partnership (PPP) project in Latvia and the first large-scale PPP in the Baltics.

The project comprises the construction and maintenance of a 17.5 kilometre stretch of road bypassing the town of Kekava, of which 14.4 kilometres will be newly built and 3.1 kilometres existing road. Kekava Bypass will become a part of Trans-European Transport Network (TEN-T) and Via Baltica (E67) – a 1,722 km road joining six countries from Prague to Helsinki.

Latvian Minister for Transport Tālis Linkaits stated: “The construction of the Kekava bypass will be the first significant public-private partnership project in Latvia. This project is especially important considering the need to develop a modern high-speed state motorway network in Latvia as envisaged in our long-term state road development strategy until 2040. The new bypass will not only improve connectivity between the Baltic capitals and reduce travel times to neighbouring municipalities, but will also divert traffic around densely populated areas and increase road safety.”

In partnership with Linklaters COBALT provided local legal advice to both lenders. Our project team was led by COBALT Partner Gatis Flinters and included Managing Partner Dace Silava-Tomsone, Partner Sandija Novicka, Specialist Counsels Edgars Lodziņš and Andrejs Lielkalns, Associate Artūrs Valderšteins and Junior Associate Maira Pužule.

EIB announcement.

NIB announcement.